HTC stops manufacturing entry-level phones

The decision comes during the discussion with the media to discuss fourth-quarter financial results

Reports have suggested that HTC will be putting a stop on the manufacturing of entry-level phone market moving forward and will instead focus its handset portfolio on high-margin devices.

The company made the statement during a conference call with the media to discuss the fourth quarter financial results. HTC stated it will continue to sell and support entry-level phones that are already in the channel, but the company said it will reduce the total number of phones to six or seven for the 2017 calendar year.

HTC has attributed high level of competition in the entry level space as one reason for dropping low-cost phones from its lineup, as well as the slim chance it will be able to create profits from such phones.

The company said it needs to focus on profitability in its handset business moving forward and will thus make only mid-range and high-end devices. HTC had announced the U Ultra and HTC U Play at the Consumer Electronics Show in January. These phones are expected to go on for sale in March.